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Court Ruling Could Hurt Kansas

Associated Press - May 31, 2015 7:51 am

Legal experts say a recent U.S. Supreme Court ruling could mean more trouble for Kansas officials already struggling with budget problems.

The court ruled that Maryland’s policy of providing only partial credit for income taxes paid in other states is unconstitutional.

Kansas gives residents full credit on state taxes for income taxes paid to other states where they work. But it does not provide the credit for the 1 percent earnings tax paid by those who work in Kansas City, Missouri.

The Kansas City Star reports the Supreme Court ruling could force Kansas to pay full tax credits to Kansans who work in Kansas City, Missouri, at an estimated cost of $35 million or more a year. The question is likely to be decided by lower courts.

 

City of Salina